When Congress and President Reagan enacted sweeping tax reforms in 1986 that cut the top income tax bracket from 50% to 28%, did the average effective tax rate for the upper 20% of income earners increase or decrease?
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Their effective tax rate increased, because the reforms also eliminated numerous tax preferences that were used for social engineering and special interest subsidies. Since that time, other Congresses and Presidents have enacted more than 150 tax preferences.
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